GENERAL MOTORS COMPANY | Report on supply chain GHG emissions reduction at GENERAL MOTORS COMPANY

Status
AGM passed
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
GM
Lead filer
Individual
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
Shareholders request that General Motors, at reasonable expense and omitting proprietary information, issue a
report describing if and how it plans to align its supply chain GHG emissions reduction strategies with its zero
emissions ambition
Whereas clause
The Intergovernmental Panel on Climate Change advises that greenhouse gas (GHG) emissions must be halved
by 2030 and reach net zero by 2050 to limit global warming to 1.5°C.1
Every incremental increase in temperature above
1.5°C will entail increasingly severe physical and systemic risks for companies and investors.
Steel and aluminum are responsible for approximately 10% of global GHG emissions.2,3 The auto industry is the
second-largest consumer of steel, procuring 12% of global supply,4
and is the largest aluminum buyer in the world.5
In its public disclosures, General Motors (GM) articulates a vision to achieve zero emissions, including goals and plans to
achieve carbon neutrality in operations and use of sold products by 2040. However, it discloses no such targets or
roadmaps for its supply chain emissions, which account for approximately 16% of the Company’s contribution to climate
change6
and include significant emissions from steel and aluminum.
7
While GM invites Tier 1 raw materials suppliers to achieve carbon neutrality by 2038 and pledges to procure 10%
near-zero steel and low carbon aluminum by 2030,8
such steps do not constitute a plan to reduce supply chain emissions
in line with its zero emissions ambition.
Furthermore, GM lags peers in mitigating supply chain GHG emissions:
• Volvo and Mercedes-Benz have improved steel supply chain sustainability by participating in the
ResponsibleSteel initiative.
9
• Volvo has joined SteelZero, pledging to procure 50% net zero steel by 2030 and 100% by 2050.10
• Nissan will transition to low-carbon aluminum by 2030.11
• BMW, Mercedes-Benz, Volvo, Porsche, and other automakers have signed offtake agreements for low carbon steel
produced by Stegra’s green hydrogen mill.12
Enhanced disclosure of GM’s plans to mitigate supply chain GHG emissions, including efforts to increase low carbon steel
and aluminum procurement, could help the Company appropriately manage competitive risks and opportunities, mitigate
climate risk, and clarify to investors how it intends to effectuate zero emissions.
Supporting statement
The essential purpose of this proposal is for GM to produce forward-looking disclosures
demonstrating whether its existing policies and actions are aligned with its zero emissions ambition, and if not, to provide
additional strategies and metrics accordingly. In developing the disclosures, proponents recommend:
• Taking into consideration approaches used by groups such as ResponsibleSteel and SteelZero;
• Describing how GM intends to meet its commitment to purchase at least 10% near-zero carbon steel and low carbon
aluminum by 2030; and
• Analyzing the financial and climates-related impacts on GM’s business of a range of low-carbon steel
adoption scenarios.

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